MTN Plunges After Nigeria Orders Refund of $8.1 Billion Dividend

Africa’s largest wireless company sanctioned along with banks
Dispute may force MTN to cut its dividend completely: analyst

The background to the MTN accusations: Bloomberg’s Paul Wallace reports from Lagos.(Source: Bloomberg)

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By David Malingha and Loni Prinsloo

August 29, 2018 at 5:16 PM UTC

Updated on

August 30, 2018 at 10:57 AM UTC

This article is for subscribers only.

Almost a year after MTN Group Ltd. thought it had been cleared over accusations of illegally taking money out of Nigeria, the issue has resurfaced with a vengeance.

Late Wednesday, the country’s central bank ordered Africa’s largest wireless carrier to return $8.1 billion it says was repatriated improperly over eight years through 2015. The decision caught the company and its shareholders off guard and the shares plunged the most in 20 years to their lowest level since 2009.